EUR/USD and GBP/USD Forecast

EUR/USD

The Euro fell apart during the trading session on Thursday as the ECB press conference was horribly negative when it comes to the outlook of global growth, and while Mario Draghi seem to point the finger outside of the European Union, the reality is that the EU has been slowing down. However, this seems to have been a bit more dovish than the market expected because traders came in and crushed the common currency. The 1.12 level was crucial in the form of support, and it also is where we see the 61.8% Fibonacci retracement level. While we have broken down, it will be crucial as to where we close on Friday. If we turn around and reverse this area, not much will have changed, and if there’s going to be a day at all that this can happen, it’s going to be Friday. According to the weekly chart, we just entered another major area.

GBP/USD

The British pound broke down during the day as well, based again on the strength of the US dollar. The area that we are in right now looks very likely to be an area that is going to attract a lot of attention. I think there’s a lot of order flow at the 1.30 level, so it’ll be interesting to see if we bounce from there. The market continues to chop around overall, and it still makes higher highs, so under all of the classic definitions, we are still very much in and uptrend. That being said, I would not put a lot of money into the market in any one particular trade, but I would build up a core position over time, allowing you to ride out the potential volatility in this market.

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Free Forex Trading Courses

Want to get in-depth lessons and instructional videos from Forex trading experts? Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders.

Most Visited Forex Broker Reviews

Stay Updated!

Also Available on

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

Risk Disclaimer

Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.